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Secure Trust Bank

LSE:STB
Snowflake Description

Excellent balance sheet, good value and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STB
LSE
£238M
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Secure Trust Bank PLC provides retail banking products and services in the United Kingdom. The last earnings update was 128 days ago. More info.


Add to Portfolio Compare Print
  • Secure Trust Bank has significant price volatility in the past 3 months.
STB Share Price and Events
7 Day Returns
-6.7%
LSE:STB
1.5%
GB Banks
1.9%
GB Market
1 Year Returns
-28.5%
LSE:STB
-18%
GB Banks
-7.6%
GB Market
STB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Secure Trust Bank (STB) -6.7% -10.9% -25.9% -28.5% -60.8% -55.3%
GB Banks 1.5% -4.1% -5.5% -18% -3.4% -23.7%
GB Market 1.9% -3% -6.4% -7.6% 6.9% -5.1%
1 Year Return vs Industry and Market
  • STB underperformed the Banks industry which returned -18% over the past year.
  • STB underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -7.6% over the past year.
Price Volatility
STB
Industry
5yr Volatility vs Market

Value

 Is Secure Trust Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Secure Trust Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Secure Trust Bank.

LSE:STB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= £14.24 * 13.6%
£1.94
Book Value of Equity per Share Weighted future Book Value estimates from 2 analysts. £14.24
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:STB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 8.6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.758 (1 + (1- 19%) (110.35%))
0.705
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.4% + (0.8 * 8.6%)
8.28%

Discounted Cash Flow Calculation for LSE:STB using Excess Returns Model Model

The calculations below outline how an intrinsic value for Secure Trust Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:STB Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.6% – 8.28%) * £14.24)
£0.76
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.76 / (8.28% - 1.4%)
£11.04
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £14.24 + £11.04
£25.28
LSE:STB Discount to Share Price
Calculation Result
Value per share (GBP) From above. £25.28
Current discount Discount to share price of £12.88
= -1 x (£12.88 - £25.28) / £25.28
49.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Secure Trust Bank is available for.
Intrinsic value
49%
Share price is £12.88 vs Future cash flow value of £25.28
Current Discount Checks
For Secure Trust Bank to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Secure Trust Bank's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Secure Trust Bank's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Secure Trust Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Secure Trust Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:STB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in GBP £1.26
LSE:STB Share Price ** LSE (2018-12-14) in GBP £12.88
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 9.23x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 812 Publicly-Listed Companies 15x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Secure Trust Bank.

LSE:STB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:STB Share Price ÷ EPS (both in GBP)

= 12.88 ÷ 1.26

10.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Trust Bank is overvalued based on earnings compared to the GB Banks industry average.
  • Secure Trust Bank is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Secure Trust Bank's expected growth come at a high price?
Raw Data
LSE:STB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
21%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.56x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 580 Publicly-Listed Companies 1.25x

*Line of best fit is calculated by linear regression .

LSE:STB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.21x ÷ 21%

0.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Trust Bank is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Secure Trust Bank's assets?
Raw Data
LSE:STB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in GBP £12.18
LSE:STB Share Price * LSE (2018-12-14) in GBP £12.88
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.85x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,354 Publicly-Listed Companies 1.46x
LSE:STB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:STB Share Price ÷ Book Value per Share (both in GBP)

= 12.88 ÷ 12.18

1.06x

* Primary Listing of Secure Trust Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Trust Bank is overvalued based on assets compared to the GB Banks industry average.
X
Value checks
We assess Secure Trust Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Secure Trust Bank has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Secure Trust Bank expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Secure Trust Bank expected to grow at an attractive rate?
  • Secure Trust Bank's earnings growth is expected to exceed the low risk savings rate of 1.4%.
Growth vs Market Checks
  • Secure Trust Bank's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Secure Trust Bank's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:STB Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:STB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 21%
LSE:STB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 12%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 15.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.5%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:STB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:STB Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 212 51 1
2020-12-31 194 41 4
2019-12-31 188 33 5
2018-12-31 162 27 5
LSE:STB Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-06-30 108 -436 23
2018-03-31 102 -328 22
2017-12-31 96 -220 20
2017-06-30 85 -492 13
2017-03-31 84 -393 14
2016-12-31 84 -295 14
2016-09-30 84 -226 18
2016-06-30 85 -157 21
2016-03-31 80 -264 20
2015-12-31 75 -371 19

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Secure Trust Bank's earnings are expected to grow significantly at over 20% yearly.
  • Secure Trust Bank's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:STB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Secure Trust Bank Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:STB Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 2.71 2.71 2.71 1.00
2020-12-31 2.10 2.23 1.82 4.00
2019-12-31 1.70 1.85 1.43 4.00
2018-12-31 1.36 1.48 1.16 3.00
LSE:STB Past Financials Data
Date (Data in GBP Millions) EPS *
2018-06-30 1.26
2018-03-31 1.17
2017-12-31 1.08
2017-06-30 0.72
2017-03-31 0.75
2016-12-31 0.78
2016-09-30 0.97
2016-06-30 1.17
2016-03-31 1.11
2015-12-31 1.06

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Secure Trust Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Secure Trust Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Secure Trust Bank has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Secure Trust Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Secure Trust Bank's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Secure Trust Bank's year on year earnings growth rate has been positive over the past 5 years.
  • Secure Trust Bank's 1-year earnings growth exceeds its 5-year average (76.5% vs 10.9%)
  • Secure Trust Bank's earnings growth has exceeded the GB Banks industry average in the past year (76.5% vs 43.1%).
Earnings and Revenue History
Secure Trust Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Secure Trust Bank Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:STB Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 107.50 23.30 69.30
2018-03-31 101.90 21.60 69.30
2017-12-31 96.30 19.90 69.30
2017-06-30 84.70 13.20 62.70
2017-03-31 84.20 13.70 62.70
2016-12-31 83.70 14.20 62.70
2016-09-30 84.10 17.70 55.90
2016-06-30 84.50 21.20 49.10
2016-03-31 79.90 20.25 49.10
2015-12-31 75.30 19.30 49.10
2015-06-30 52.40 13.90 36.30
2015-03-31 53.70 13.90 36.30
2014-12-31 55.00 13.90 36.30
2014-09-30 77.35 18.20 48.65
2014-06-30 72.10 15.90 43.30
2014-03-31 67.75 14.10 43.30
2013-12-31 63.40 12.30 43.30
2013-09-30 58.20 10.45 35.90
2013-06-30 53.00 8.60 28.50
2013-03-31 45.55 12.05 28.50
2012-12-31 38.10 15.50 28.50
2012-09-30 32.00 14.80 22.22
2012-06-30 25.90 14.09 15.94
2012-03-31 24.88 9.58 15.94
2011-12-31 23.86 5.06 15.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Secure Trust Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Secure Trust Bank used its assets more efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Secure Trust Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Secure Trust Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Secure Trust Bank has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Secure Trust Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Secure Trust Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Secure Trust Bank Company Filings, last reported 5 months ago.

LSE:STB Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 225.00 263.00 160.90
2018-03-31 225.00 263.00 160.90
2017-12-31 249.10 113.00 260.40
2017-06-30 239.30 63.00 139.50
2017-03-31 239.30 63.00 139.50
2016-12-31 236.00 70.00 130.20
2016-09-30 236.00 70.00 130.20
2016-06-30 228.40 15.00 155.90
2016-03-31 228.40 15.00 155.90
2015-12-31 141.20 35.00 141.60
2015-06-30 128.40 0.00 121.60
2015-03-31 128.40 0.00 121.60
2014-12-31 124.90 15.90 106.00
2014-09-30 124.90 15.90 106.00
2014-06-30 63.30 0.00
2014-03-31 63.30 0.00
2013-12-31 61.60 0.00 90.00
2013-09-30 61.60 0.00 90.00
2013-06-30 54.00 0.00
2013-03-31 54.00 0.00
2012-12-31 55.90 0.00 94.00
2012-09-30 55.90 0.00 94.00
2012-06-30 34.92 5.00 0.07
2012-03-31 34.92 5.00 0.07
2011-12-31 23.82 3.00 119.60
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Secure Trust Bank has an acceptable proportion of non-loan assets held.
  • Secure Trust Bank's liabilities are made up of primarily low risk sources of funding.
  • Loans at Secure Trust Bank are broadly funded by customer deposits.
  • Secure Trust Bank's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Secure Trust Bank has a sufficient allowance for bad loans.
  • Secure Trust Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Secure Trust Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Secure Trust Bank has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Secure Trust Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.21%
Current annual income from Secure Trust Bank dividends. Estimated to be 6.91% next year.
If you bought £2,000 of Secure Trust Bank shares you are expected to receive £124 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Secure Trust Bank's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).
  • Secure Trust Bank's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:STB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 708 Stocks 4.4%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:STB Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.95 4.00
2019-12-31 0.90 5.00
2018-12-31 0.83 4.00
LSE:STB Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2018-08-08 0.800 5.142
2018-03-22 0.790 4.222
2017-04-07 0.750 4.015
2017-03-23 0.750 3.550
2016-03-17 0.720 3.112
2015-07-22 0.690 2.330
2015-04-09 0.680 2.379
2015-03-19 0.680 2.321
2014-03-20 0.620 2.383
2013-04-03 0.570 2.512
2013-03-21 0.570 3.001
2012-07-26 0.280 1.968
2012-03-15 0.042 0.406
2012-03-14 0.042 0.392
2011-11-02 0.200 2.265

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Secure Trust Bank has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Secure Trust Bank only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Secure Trust Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess Secure Trust Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Secure Trust Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Secure Trust Bank has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Secure Trust Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Lynam
COMPENSATION £1,663,000
AGE 49
TENURE AS CEO 8.3 years
CEO Bio

Mr. Paul Anthony Lynam, ACIB, AMCT, FIFS, has been the Chief Executive of Secure Trust Bank Plc since September 13, 2010. Mr. Lynam served as the Managing Director of Banking at Royal Bank of Scotland Group. Previously, he served as the Chief Executive of UK Business Banking and Managing Director of Lombard North Central PLC. He held roles in branch banking, business banking, corporate and commercial banking, strategy, performance management, lending and central head office functions. He has spent 22 years working for NatWest and RBS. Prior to leaving RBS, he was the Managing Director, Banking, for RBS/NatWest’s SME banking business across the UK. He is a member of the board of UK Finance. He serves as a Director at Secure Trust Bank Plc since September 13, 2010. He served as a Director of Arbuthnot Banking Group PLC from September 13, 2010 to August 8, 2018. Mr. Lynam holds banking (ACIB) and treasury qualifications (AMCT) and is a Governor of the IFS School of Finance. He is a Fellow of the IFS University College as well as having served as a governor and trustee of IFS University College. He is also an Associate of the Chartered Institute of Bankers and the Association of Corporate Treasurers.

CEO Compensation
  • Paul's compensation has been consistent with company performance over the past year.
  • Paul's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Secure Trust Bank management team in years:

0.9
Average Tenure
  • The average tenure for the Secure Trust Bank management team is less than 2 years, this suggests a new team.
Management Team

Paul Lynam

TITLE
CEO & Director
COMPENSATION
£2M
AGE
49
TENURE
8.3 yrs

Neeraj Kapur

TITLE
CFO & Director
COMPENSATION
£620K
TENURE
7.6 yrs

Ciara Raison

TITLE
Head of Dealer Sales
TENURE
0.6 yrs

David Mercer

TITLE
Managing Director - Motor Finance

Alan Karter

TITLE
Company Secretary
TENURE
4.3 yrs

Howard Pailey

TITLE
Product Director of Motor Finance
TENURE
0.6 yrs

Nikki Tyler

TITLE
Operations Director of Motor Finance
TENURE
0.9 yrs

Tim Maffey

TITLE
Finance Director of Motor Finance
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the Secure Trust Bank board of directors in years:

2.1
Average Tenure
55
Average Age
  • The average tenure for the Secure Trust Bank board of directors is less than 3 years, this suggests a new board.
Board of Directors

Forsyth of Drumlean Forsyth

TITLE
Non-Executive Chairman
COMPENSATION
£201K
AGE
63
TENURE
2.2 yrs

Paul Lynam

TITLE
CEO & Director
COMPENSATION
£2M
AGE
49
TENURE
8.3 yrs

Neeraj Kapur

TITLE
CFO & Director
COMPENSATION
£620K
TENURE
7.6 yrs

Paul Marrow

TITLE
Senior Independent Director
COMPENSATION
£126K
TENURE
2.9 yrs

Ann Berresford

TITLE
Independent Non-Executive Director
COMPENSATION
£75K
AGE
57
TENURE
2.1 yrs

Victoria Stewart

TITLE
Independent Non-Executive Director
COMPENSATION
£73K
TENURE
2.1 yrs

Lucy Neville-Rolfe

TITLE
Independent Non-Executive Director
TENURE
0.1 yrs

Paul Myers

TITLE
Independent Non-Executive Director
AGE
53
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Secure Trust Bank insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
18. Oct 18 Buy Michael Forsyth Individual 18. Oct 18 18. Oct 18 1,000 £14.87 £14,865
X
Management checks
We assess Secure Trust Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Secure Trust Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Why These Fundamentals Make Secure Trust Bank Plc’s (LON:STB) More Attractive

As a small-cap bank stock with a market capitalisation of UK£320.55m, Secure Trust Bank Plc’s (LON:STB) risk and profitability are largely determined by the underlying economic growth of the GB regions in which it operates. … The Basel III reforms are aimed at banking regulations to improve financial institutions’ ability to absorb shocks caused by economic stress which could expose banks like Secure Trust Bank to vulnerabilities. … Since its financial standing can unexpectedly decline in the case of an adverse macro event such as political instability, it is important to understand how prudent the bank is at managing its risk levels.

Simply Wall St -

Why Secure Trust Bank Plc (LON:STB) May Be Riskier Than You Think

As a small bank, Secure Trust Bank’s profits are directly affected by macroeconomic events as the ability for borrowers to repay their debt depends on the stability of their salary and interest rate levels. … Bad debt is directly written off as an expense which impacts Secure Trust Bank’s bottom line and shareholders’ value. … Today we’re going to assess the level of bad debt and liabilities Secure Trust Bank currently has in order to properly analyse the risk involved with investing in Secure Trust Bank.

Simply Wall St -

Does Secure Trust Bank Plc (LON:STB) Have A Place In Your Portfolio?

Over the past 7 years, Secure Trust Bank Plc (LON:STB) has returned an average of 3.00% per year to shareholders in terms of dividend yield. … Does Secure Trust Bank tick all the boxes of a great dividend stock? … Check out our latest analysis for Secure Trust Bank

Simply Wall St -

If You Bought Secure Trust Bank Plc (LON:STB) Today, There May Be An Upside

Pricing STB, a financial stock, can be difficult since these banks have cash flows that are affected by regulations that are not imposed upon other sectors. … The tiered capital structure is common for banks to abide by, in order to ensure they maintain a sufficient level of cash for their customers.

Simply Wall St -

A Holistic Look At Secure Trust Bank Plc (LON:STB)

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Secure Trust Bank Plc (LON:STB) due to its excellent fundamentals in more than one area.

Simply Wall St -

Is Secure Trust Bank Plc (LON:STB) Undervalued After Accounting For Its Future Growth?

Growth expectations for Secure Trust Bank Plc (LON:STB) are high, but many investors are starting to ask whether its last close at £19.175 can still be rationalized by the future potential. … View out our latest analysis for Secure Trust Bank? … The excitement around Secure Trust Bank's growth potential is not unfounded

Simply Wall St -

May Growth Stock Picks

STB’s projected future profit growth is a robust 24.68%, with an equally impressive underlying growth from its revenues expected over the upcoming years. … An outstanding 32.57% earnings growth is forecasted for VCP, driven by an underlying sales growth of 48.93% over the next few years. … We see this bottom-line expansion directly benefiting shareholders, with expected return on equity coming in at a notable 25.36%.

Simply Wall St -

Secure Trust Bank Plc (LON:STB): Dividend Is Coming In 3 Days, Should You Buy?

Secure Trust Bank Plc (LSE:STB) will be distributing its dividend of £0.61 per share on the 25 May 2018, and will start trading ex-dividend in 3 days time on the 26 April 2018. … See our latest analysis for Secure Trust Bank How I analyze a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is it paying an annual yield above 75% of dividend payers? … LSE:STB Historical Dividend Yield Apr 22nd 18 How well does Secure Trust Bank fit our criteria?

Simply Wall St -

Read This Before Buying Secure Trust Bank Plc (LON:STB) For Its Upcoming £0.61 Dividend

See our latest analysis for Secure Trust Bank 5 checks you should do on a dividend stock When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas: Is their annual yield among the top 25% of dividend payers? … LSE:STB Historical Dividend Yield Apr 16th 18 How well does Secure Trust Bank fit our criteria? … Next Steps: Taking into account the dividend metrics, Secure Trust Bank ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers.

Simply Wall St -

Financial Metrics For Secure Trust Bank Plc (LON:STB)

High liquidity and low leverage could position Secure Trust Bank favourably at the face of macro headwinds. … Though banks are required to have a certain level of buffer to meet its capital requirements, Secure Trust Bank’s leverage level of 8x is very safe and substantially below the maximum limit of 20x. … Since Secure Trust Bank’s loan to deposit ratio of 107.76% is higher than the appropriate level of 90%, this level places the bank in a relatively dangerous position given the negative liquidity discrepancy.

Simply Wall St -

Company Info

Map
Description

Secure Trust Bank PLC provides retail banking products and services in the United Kingdom. It operates in seven segments: Real Estate Finance, Asset Finance, Commercial Finance, Personal Lending, Motor Finance, Retail Finance, and Consumer Mortgages. The Real Estate Finance segment provides finance for commercial and residential real estate developments and investments, as well as for mixed development projects. The Asset Finance segment offers loans to acquire the commercial assets, such as commercial vehicles, and building and manufacturing equipment to small and medium sized enterprises (SMEs). The Commercial Finance segment provides invoice financing solutions, including invoice factoring and discounting services to SMEs. The Personal Lending segment offers unsecured consumer loans through broker aggregators and partners. The Motor Finance segment provides hire purchase agreements secured against the vehicle being financed. This segment distributes its motor finance products through motor dealers, brokers, and Internet introducers. The Retail Finance segment offers point of sale unsecured finance for in-store and online retailers. This segment serves retailers of various industries, including cycle, music, furniture, outdoor/leisure, electronics, dental, jewelry, home improvements, and football season tickets. The Consumer Mortgages segment provides residential mortgages for self-employed and contract workers through mortgage intermediaries. The company also provides savings products, including notice deposits, and term deposits, as well as deposit bonds; current accounts; debt collection services; and property rental and leasing services. The company was founded in 1952 and is headquartered in Solihull, the United Kingdom. Secure Trust Bank PLC is a subsidiary of Arbuthnot Banking Group PLC.

Details
Name: Secure Trust Bank Plc
STB
Exchange: LSE
Founded: 1952
£238,330,454
18,475,229
Website: http://www.securetrustbank.com
Address: Secure Trust Bank Plc
One Arleston Way,
Shirley,
Solihull,
West Midlands, B90 4LH,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE STB Ordinary Shares London Stock Exchange GB GBP 02. Nov 2011
Number of employees
Current staff
Staff numbers
747
Secure Trust Bank employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/14 22:21
End of day share price update: 2018/12/14 00:00
Last estimates confirmation: 2018/11/06
Last earnings filing: 2018/08/08
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.